The Canadian used wholesale market continues to see prices rise, as we enter the holiday season, prices have increased for the 18th straight week. 19 of the 22 vehicle segments saw prices increase for the week, as declining inventory continues to main driver for the increasing prices. Overall, prices increased +0.45% for the week. The Car segments up +0.38% and Truck/SUV segments up +0.52%. The Compact Van segment saw the largest price increase (+3.17%) for the week, followed by Full-Size Van (+2.96%) and Sub-Compact Crossover (+1.27%).
Average (Same Week)
& SUV segments
• Overall, volume-weighted wholesale used car prices increased +0.38% for the week, continuing the positive trend for the 16th straight week. • All 9 Car segments saw prices increase for the week. • The Sub-Compact Car segment had the largest price increase for the week (+1.25%) followed by Compact Car (+1.13%) and Mid-Size Car (+1.05%).
• Overall, volume-weighted wholesale used Truck/SUV prices increased +0.52% for the week, continuing the positive trend for the 18th straight week. • The Compact Van segment had the largest price increase for Truck/SUV segments at +3.17%, followed by Full-Size Van (+2.98%) and Sub-Compact Crossover (+1.27%) • Full-Size Crossover/SUV saw the biggest decrease (-1.19%), followed by Full-Size Luxury Crossover/SUV and Full-Size Pickup (-0.33%).
Used Retail Prices & Listing Volumes
The average listing price for used vehicles continues to hit historic highs week-over-week, as the 14-day moving average now sits above $31,500. Analysis is based on approximately 120,000 vehicles listed for sale on Canadian dealer lots.
The Canadian wholesale market continues to increase yet again. This past week, almost all segments reported increasing values. Supply remains low while demand continues to be strong on both sides of the border. Upstream channels continue to tap supply before it can be available at physical auctions.
Conversion rates remained strong this past week. Rates were observed into the 60% range on some lanes last week, with the few low kilometer, good condition units garnering high levels of bidding activity. In general, the quality of vehicles at auction remains somewhat below average as the supply of better-quality vehicles continues to be bought upstream.
The U.S. market exchange rate is similar compared to the previous week and remains favorable for exportation when price and demand are taken into consideration.
Canadian Black Book’s Market Insights
Economics & Government
• Canadian business owners expect sales to rebound to pre-pandemic levels in 2022: according to survey. • Bank of Canada to maintain current inflation mandate. • The Canadian dollar fell slightly to finish the week at $0.78.
• The Rivian R1T Is the 2022 MotorTrend Truck of the Year • 2022 Kia EV6 Gets EPA-Rated to Up To 310 Miles of Range • General Motors Co. is halting production of the Chevrolet Corvette at its Bowling Green Assembly plant in Kentucky after tornadoes this weekend damaged the plant, the company confirmed Monday. • Toyota has extended its production line stoppages in Japan due to ongoing shortages. Despite the output halts the firm says its staying with its annual global production target announced in September of 9 million vehicles for the year to March 31.
In the U.S., overall Car and Truck segments (+0.20%) increased for a fifteenth week; the prior week increased by +0.41%
Volume-weighted Car segments increased +0.01%, compared to the prior week’s increase of +0.25%:
• Cars aged 2-to-8-years old are beginning to soften, but newer used vehicles (0-to-2-year-old) reported a larger increase, +0.10% last week. • Compact Cars reported the largest decrease of –0.37%, compared to -0.15% the week prior. • Near Luxury Cars (+0.35%) reported the largest increase last week.
Volume-weighted Truck segments increased +0.30%; the previous week had an increase of +0.50%
• Full-Size Vans continue to see extreme strength, increasing another +1.20% last week. This now marks the forty-fifth increase in the last forty-six weeks. • The Compact Luxury Crossover (-0.01%) segment was the only truck/SUV segment to report a decline this past week. • Compact Crossovers have slowed their rate of increase, reporting +0.09% last week, compared to +0.90% the prior week.